Social Security Legislative Bulletin

Number:104-10
Date: September 26, 1995

THE SENATE PASSES H.R. 4
THE "WORK OPPORTUNITY ACT OF 1995"

On September 19, 1995, tile Senate passed its version of a welfare reform bill--H.R. 4, the "Work Opportunity Act of 1995" by a vote of 87 to 12. The bill reflects the Dole amendment to the bill reported by the Senate Finance Committee on June 8, 1995 (See Legislative Bulletin 104-7) and subsequent amendments offered and
passed on tile Senate floor.

The House passed its version of the bill, "The Personal Responsibility Act of 1995," on March 24, 1995 (See Legislative Bulletin 104-4). Both the Senate and the House must now appoint conferees and schedule a conference to reconcile the differences between tile Senate- and House-passed bills.

Prohibits SSI eligibility, including cash SSI benefits and Medicaid coverage, to those individuals whose DAA is a contributing factor material to their disability.

Creates a new category--SSI disability beneficiary with a DAA condition. All such beneficiaries who have a DAA condition would be subject to representative payee requirements. including preference to organizations as payees. and would be referred for substance abuse treatment. Representative payee requirements would apply to current SSI disabled beneficiaries determined to have a DAA condition at their first continuing disability review after enactment and to SSI beneficiaries who attain age 65 in a manner determined appropriate by SSA.

Repeals the current law provis ion that requiresdemonstration projects oninnovative approaches for referral, monitoring, and treatment of SSI DAA beneficiaries.

Requires notification of affected SSI DAAs within 90 days of enactment. DAAs who wish to reapply for SSI benefits must do so within 4 months after enactment. The Commissioner would be required to make a determination of their eligibility within 1 year after enactment.

Effective upon enactment for new applicants. SSI eligibility of DAAs on the
rolls at the time of enactment would continue to receive benefits until
January 1, 1997.

Removes current requirements for annual reports by payees and modifies current provi sions for review of reports to apply to a sample of reports.

Provides that the Commiss ioner, at the request of the representative payee, would pay any lump-sum payment for the benefit of a SSI-eligible child into a dedicated savings account that could only be used for:

education and job skills training;

special equipment or housing modification; and

appropriate therapy and rehabilitation.

Funds contained in, and interest earned on such account would be excluded from the determination of the individual's resources under SSI.

Effective upon enactment.

PROVISIONS RELATED TO CHILDREN WITH DISABILITIES

Restrictions on Eligibility for Benefits

Repeals the comparable severity provision and provides that an individual under
age 18 would be considered disabled if he/she has a medically determinable
physical or mental impairment which results in marked, and severe functional
limitations and which can be expected to last for a continuous period of
12 months or to result in death.

Eliminates references to maladaptive behavior in the domain of personal/behavioral function in sections 112.00C.2. and 112.02B.2.c.(2) of the Listing of Impairments.

Discontinues the use of an individualized functional assessment for evaluating disability in individuals under age 18.

These changes apply to applicants for benefits for months beginning on or after the date of enactment of this Act, without regard to whether regulations have been issued to implement such changes.

Requires the Commissioner, within 1 year after the date of enactment, to redetermine the eligibility of any recipient who was receiving benefits as of the date of enactment and whose eligibility for such benefits would terminate by reason of these amendments. Such redeterminations would be given priority over other redetermination reviews.

Requires the Commissioner to notify recipients affected by this provision within
90 days after enactment date.

These amendments apply to such recipients for months beginning on or after
January 1, 1997; such recipients would be held harmless for any benefits paid
until such date.

Continuing Disability Reviews and Redeterminations

Requires the Commissioner to review continuing eligibility, at least once every
3 years, tile eligibility for SSI benefits of each individual under age 18 whose
condition is not expected to improve, The medical improvement reviewstandard (MIRS) would be applicable; and at the time of review, the
parent/guardian must present evidence that the child is receiving appropriate
treatment.

Requires the Commissioner to redetermine theeligibility of an SSI disability
recipient during the 1-year period beginning on the date such recipient attains
age 18. The SSI disability eligibility criteria for applicants age 18 and older
would be applied in making such redeterminations.

Requires the Commissioner to review the continuing eligibility for SSI disability
benefits of an individual whose low birth weight is a contributing factor
material to the finding that such individual is disabled . These reviews
must be conducted not later than 12 months after the birth of the individual. The MIRS would be applicable at the time of the review and the
parent/guardian must present evidence that the child is receiving appropriate
treatment.

These amendments would apply to benefits for months beginning on or after the
date of enactment of this Act, without regard to whether regulations have been
issued to implement them.

Limited Eligibility of Noncitizens for SSI Benefits

Provides generally that noncitizens would be ineligible for SSI, with the
following exceptions:

noncitizens admitted to the United States as refugees under section 207
of the Immigration and Nationality Act (INA), or as asylees under
section 208 of the INA, or whose deportations have been withheld under
section 243(h) of the INA would remain eligible for SSI during the first
5 years after their arrival in the United States;

noncitizens who are United States military veterans who were honorably discharged and spouses and unmarried dependent children of such veterans who are lawfully present in the United States;

noncitizens who have worked sufficient quarters of coverage to be fully insured under title II; and

noncitizens who have been battered or subjected to extreme cruelty if the
application of the prohibition of elig ibility would endanger such
individual.

Requires notification of all noncitizens affected by the provision within 1 month
from date of enactment. Any noncitizen who desires to reapply for benefits
after such notification would be required to do so within 4 months after
enactment, and the Commissioner would be required ta make a determination of
their eligibility within I year after enactment.

Effective upon enacunent for new applicants. The SSI eligibility of aliens on
the rolls at the time of enactment who do not meet one of the exceptions would
continue until January 1, 1997.

Deems the full amount of a sponsor's and sponsor's spouse's income and
resources to an individual regardless of whether he or she has become a u.s.
citizen. (Deeming would not apply to noncitizens eligible for SSI.) Deeming
would continue for 5 years after the first day the individual is lawfully pre sent
in the United States or until the date specified in the sponsorship affidavits of
support, whichever period is longer. Effective upon enactment.

Requires determination of individuals' ability to provide themselves with food
and shelter in the absence of SSl benefits taking into account their other
income, including sponsors' contributions. If determined to be unable to meet
those needs, only the amount of the sponsors' income and resources actually
provided would be deemed. Effective upon enactment.

Requires sponsors' affidavits of support to included sponsors ' agreement to
support the individuals until they have worked 40 quarters in the United States
even if they become U.S. citizens. Effective with respect to new affidavits
entered into 90 days after enactment.

OTHER SSI PROVISIONS

Increase Age for SSI Aged Benefits

Increases the age requirement for "aged" benefits to correspond with Social
Security program' s "retirement age." Beginning in 2003, the age would
increase 2 months per year until it reaches age 66 in 2008. A similar transition
between age 66 and 67 would occur between 2021 and 2026. Effective for
individuals obtaining age 62 after December 1, 1999 and later.

Repeal Maintenance of Effort Requirement

Eliminates the maintenance of effort requirement ("passalong") for States with
regard to the ir State supplementary payment programs. Effective for calendar
quarters beginning after September 1995.

Receipt of Benefits in Two or More States

Prohibits SSI eligibility for 10 years for individuals who have been convicted in
a State or Federal court of having fraudulently misrepresented their State of
residence in order to receive SSI. AFDC, Medicaid, or food stamp benefits
simultaneously from two or more States. Effective upon enactment.

Fugitive Felons and Parole and Probation Violations

Prohibits SSI eligibility for fugitive felons and parole and probation violators
and requires SSI to provide law enforcement personnel, upon their request, the
addresses of SSI recipients involved in, or who have information concerning
parole or probation violations, other criminal activities, or criminal
investigations. Effective upon enactment.

Provides that, if an individual is found ineligible for benefits under any public
assistance program, including SSI, due to a finding of fraud, any other public
assistance benefits for which he or she is eligible would not be increased.
Effective upon enactment.

Provides that non-custodial parents who are more than 2 months delinquent in paying child support arc ineligible to receive any means-tested Federal benefits. A non-custodial parent who becomes delinquent in child support a second or any subsequent time. would not be eligible to receive any means-tested Federal benefits for a 2-year period, beginning on the date that such parent failed to meet the terms of support. Effective upon enactment.

DISABILITY-RELATED PROVISIONS

National Commission on the Future of Disability

Establishes a National Commission on the Future of Disability, whose expenses
would be paid from funds otherwise appropriated for SSA. The Commission
would be required to undertake a comprehensive study of all matters related to
the nature. purpose, and adequacy of all Federal programs serving individuals
with disabilities and to report its recommendations for changes to the President
and the Congress.

The Commission members should be appointed within 60 days after the date of
enactment and serve for the life of the Commission. i.e., a 2-year period.

Requires the Commiss ion to submit an interim report, at the end of the first
year. to the President and the Congress. This report must include a detailed
statement of the findings and conclusions of the Commission, together with the
Commission's recommendations for legislative and administrative actions.

A final report, which discusses both the Commission's final findings,
conclusions, and recommendations and an assessment of the extent to which the
recommendations contained in its interim report have been implemented, would
be required no later than the date on which the Commission terminates.

Upon receipt, the President would be required to print each report and make it
available to the public upon request.

Study of Disability Detemination Process

Requires the Commissioner, from funds otherwise appropriated, to contract
with the National Academy of Sciences, or some other independent entity, to
conduct a comprehensive study of the disability dctennination process under
titles II and XVI of Ole Social Security Act, including the validity, reliability,
equity, and consistency of the Listing of Impairments with current scientific
knowledge and standards. Effective not later than 180 days after the date of
enactment.

The study would include an examination of the appropriateness of the
definitions of disability under buth titles and the advantages and disadvantages
of alternative definitions.

Requires the Commissioner. through the appropriate entity, to issue an interim
report and a final report of the findings and recommendations resulting from the
study to the President and the Congress, not later than 12 months and
24 months, respectively, from the date of the contract for such study.

OTHER SSA-RELATED PROVISIONS

Regular Report to INS on lIIegal Aliens

a Requires the Commissioner to report to INS no less than four times a year, and
upan the request of the INS, the name, address and other identifying
information of every individual the Commissioner knows to be in the United
States illegally. In addition, States with State supplementary agreements under
section 1616(a) must agree to do the same.

Development of Prototype of Counterfeit-Resistant Social Security Card

Requires SSA to develop a prototype of a counterfeit-resistant Social Security
card made of plastic or polyester which uses security features, such as magnetic
stripes, holograms, etc. and provides reliable proof of citizenship or legal
resident alien status. SSA is to conduct a study and within I year of the date of
enactment, issue a report to Congress on the different methods of improving the
Social Security card application process. The study is to evaluate the cost and
workload implications of issuing a counterfeit-resistant card for all individuals
over a 3. 5. and 10-year per iod. In addition, the study is to evaluate the
feasibility and cost implications of imposing a user fee for replacement cards.
Appropriations would be authorized from the OAS! trust fund to fund the study.

Expansion of the Federal Parent Locator Service

Requires HilS to transmit to SSA. for verification purposes, certain information
about individuals and employers maintained under the Federal Parent Locator
Service (To be established by October I . 1998). SSA would be required to
verify the accuracy of. correct. or supply to the extent possible. and report to
HHS the name, SSN, and birth date of individuals and the employeridentification number of employers. SSA would be reimbursed by HilS for the
cost of this verification service.

Collection and Use of SSNs for Use in Child Support Enforcement

Effective October 1, 1996, State child support enforcement procedures would
have to require that the SSN of any applicant for a professional license,
commercial driver's license, occupational license, or marriage license be
recorded on the application. The SSN of any person subject to a divorce
dec ree, support order, or paternity determination or acknowledgement would
have to be placed in the pertinent records. SSN's would also have to be
reco rded on death certificates.

Prohibition on Payment of Federal Benefits to Certain Persons

Prohibits payment of Federal benefits including Social Security benefits, with
some exceptions, to any person who is not lawfully present in the United
States. A person lawfully present in the U.S. includes a U.S. citizen, a
permanent resident alien, an alien whose deportation has been withheld under
section 243(h) of the INA, an asylec, a refugee, a parolee who has been
paroled for a period of at least I year, a national, or a national of the U.S. (as
defined in section IOl(a)(17) of the INA).